UK India Free Trade Agreement Update
A lot has happened though during this last year, a new Government for the UK and the same but revitalised for India – but a potential trade deal between the UK and India is perhaps more important than it’s ever been. As politics and political strutting dominates the news and global trade, with tariffs and counter-tariffs announced at a remarkable rate, will we see a change to the traditional global order?
A trade deal with India has been seen as a big breakthrough for the UK for a long time. Given our shared history and close connections—both as nations and on a personal level—it just seems like the right thing to do. India’s economy is growing rapidly, while the UK is struggling to keep up. This feels like a crucial opportunity that we can’t afford to miss
Bilateral trade between India and the UK increased from $20.36B in 2022-23 to $21.34B in 2023-24 and is predicted to continue to rise well into the future.
UK India Free Trade – Much More to Overcome?
Both sides have clear challenges to overcome. India wants more opportunities for its skilled workers in areas like IT and healthcare to work in the UK, along with tax-free access to certain goods. Meanwhile, the UK is pushing for lower import taxes on whisky, electric cars, lamb and confectionary.
Global trade is changing and rapidly. In the recently published World Economic Forum Global Risk Report for 2025, the third most perceived risk in the short to mid term is “Geo-economic conflict” – Trade Wars, and traders are advised to diversify supply chains as a priority. We see more and more Western businesses doing just that and moving not just supply chains but manufacturing from China to India.
Two key industries that Espace is deeply involved in—automotive and aerospace—are sending trade missions from the UK to India in 2025. This is clear evidence that the world still values UK advanced manufacturing. At the same time, India’s growing demand for these industries, along with its improving quality standards, makes for a great partnership. These industries stand to benefit a lot from UK India Free Trade.
We’ve seen a rise in our trade with India after making a strategic decision two years ago to prepare for a surge in goods moving between the UK and India. Thanks to our top-tier agent and their extensive network across all Indian states, we can handle all air and ocean freight requests efficiently and competitively. Learn more at www.espaceglobalfreight.com/en/services/india/.
We hope to bring you news to a UK India Free Trade Agreement during 2025.
Visit the Espace Europe Ltd website for more information on UK India Free Trade Agreement Update
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